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First Digital denies insolvency claims by Justin Sun and plans legal action, addressing FDUSD's deviation from its $1 peg.
What’s the Scoop?
- FDUSD Depegs: The Hong Kong-based stablecoin fell to $0.87 against
Tether (USDT) and $0.76 against USDC on 
Binance before stabilizing at $0.98. - Justin Sun's Claims:
Tron founder Justin Sun alleged that First Digital Trust, which manages FDUSD reserves, is 'effectively insolvent' and warned users to secure their assets. - First Digital's Response: First Digital refuted Sun's claims, asserting solvency with reserves backed by U.S. Treasury bills and accusing Sun of launching a smear campaign.
- Legal Action: First Digital intends to take legal action to protect its reputation and business against the allegations.
The recent allegations by Justin Sun against First Digital Trust are completely false.
— First Digital (@FirstDigitalHQ) April 2, 2025
This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent.
Every dollar backing $FDUSD is completely, secure, safe and accounted for with US backed T-Bills. The…
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